Research On The Influence Of Two-way FDI On The Optimization And Upgrading Of China's Industrial Structure

At present,China is in a critical period of transforming the economic development pattern,optimizing the economic structure and moving towards the High-Quality economic development,and the optimization and upgrading of industrial structure is the primary task.In the context of China's deep integration into the world economic tide,especially in the context of international and domestic dual-cycle development strategy,to promote the optimization and upgrading of China's industrial structure should have an international perspective,on the basis of global industrial division of labor distribution,and give full play to the advantages of the international market and the domestic market.International direct investment(FDI)has always been an important way for economies to carry out international industrial transfer and promote domestic industrial upgrading.Since the Chinese Reform and Opening-up,the scale of international direct investment(IFDI)introduced in China has been continuously expanding.In 2014,China has become the country with the largest scale of IFDI in the world.In 2013,China proposed the "One Belt And One Road" development strategy,providing an important opportunity for the development of China's OFDI.In 2018,China became the third country in the world to carry out OFDI.In 2020,impacted by the COVID-19 epidemic,the global economy was shrunk,but the total scale of China's IFDI and OFDI still went up against the trend,and the investment structure has been more optimized.The international direct investment of "bringing in" and "going out" has an increasingly far-reaching influence on the adjustment of China's domestic and international industrial layout.In this context,this paper constructs a theoretical mechanism for the impact of Two-way FDI on the optimization and upgrading of industrial structure from the supply side and demand side,and conducts an empirical test on the effect of the optimization and upgrading of China's Two-way FDI industrial structure and the effectiveness of the intermediary mechanism based on the provincial panel data from 2008 to 2019.On this basis,this paper from the perspective of certainty and uncertainty,further studies the influencing factors of the effect of industrial structure optimization and upgrading of Two-way FDI from two aspects of investment environment and external shocks impact.In the study of influencing factors of investment environment,this paper analyzes the influence mechanism of trade development environment,financial development environment and market economy environment on the effect of optimization and upgrading of Two-way FDI industrial structure,and constructs corresponding indexes for empirical test.In the analysis of influencing factors of external shocks,this paper takes the impact of COVID-19 epidemic on the optimization and upgrading effect of China's Two-way FDI industrial structure in 2020 as a case study,and summarizes the possible impact of economic external shocks on the optimization and upgrading effect of Two-way FDI industrial structure.This paper draws the following conclusions: first,two-way FDI has a positive impact on the optimization and upgrading of China's industrial structure;second,the investment environment plays an important role in the optimization and upgrading effect of two-way FDI industrial structure;third,the impact of external shocks on the optimization and upgrading effect of two-way FDI industrial structure cannot be ignored.Accordingly,this paper puts forward the following countermeasures and suggestions: first,adhere to the "bringiing in" strategy,promote the "high-quality" investment transformation;second,we should adhere to the "going out" strategy and optimize foreign and international direct investment;third,adhering to the principle of "bringing in" and "going out",and giving play to the advantages of two-way FDI in coordinated development;fourth,optimize the construction of investment environment and give play to the advantages of two-way FDI in promoting the optimization and upgrading of industrial structure;fifth,foster economic resilience and actively respond to the impact of external shocks.The significance of the theoretical research of this paper lies in the establishment of a unified analytical framework for the impact of Two-way FDI on the optimization and upgrading of industrial structure,and the in-depth analysis of the impact mechanism of Two-way FDI on the optimization and upgrading of industrial structure.For the first time,this paper studies the influencing factors of the effect of bidirectional FDI industrial structure optimization and upgrading from the perspective of deterministic and uncertain economic environment.The theoretical analysis of this paper not only expands the influence of Two-way FDI on the optimization and upgrading of industrial structure from the research perspective,but also complements the influence of external shocks on the optimization and upgrading effect of Two-way FDI industrial structure from the research content.The practical significance of this paper is to reveal the effect of Two-way FDI on the optimization and upgrading of China's industrial structure and the effectiveness of the intermediary mechanism.This provides a practical basis for China to explore how to actively implement the strategies of "bringing in" and "going out" as both host country and investor country,give full play to the advantages of international direct investment and promote the optimization and upgrading of China's industrial structure.In addition,this paper empirically tests the influence of the trade development level,financial development level and marketization level of each province on the optimization and upgrading effect of China's Two-way FDI industrial structure.This provides beneficial empirical evidence for an in-depth study of the possible impact of the effect of industrial structure optimization and upgrading of Two-way FDI on the basis of the different economic development environments in different regions of China.This provides policy focus and reform basis for China to further study how to give full play to the advantages of Two-way FDI and promote the optimization and upgrading of industrial structure.Finally,taking the COVID-19 epidemic in 2020 as an example,this paper analyzes the impact of external shocks on the optimization and upgrading effect of China's Two-way FDI industrial structure.In the short term,this provides research enlightenment for China to cope with the current epidemic crisis and effectively exert the advantages of Two-way FDI to promote the optimization and upgrading of China's industrial structure.In the long run,it provides research enlightenment for China to build and improve the system and mechanism to cope with external shocks and reduce the impact of international economic environment uncertainty and risks on China's domestic development.